Contents
Article 4: Principles of Employment Service for Lao National
Article 5. Employment Service Enterprise Standard
Article 6. Employment Service Information
Article 7. Types of Employment Service
Article 8. Options of Employment Service
Article 9. Forms of Employment Service
Article 10. Balancing Employment Service
Section II: The Employment Service Enterprise Establishment Approval
Article 11. The Establishment of Employment Service Enterprises
Article 12. Application for the Establishment
Article 13. Types of Employment Service Enterprises
Article 14. Criteria for the Establishment
Article 15. Application Documents
Article 16. Registered Capital and Collateral
Article. 17 Consideration and Approval Duration
Article. 18 License Period for Employment Service Enterprises
Article. 19 The Employment Service Enterprise License Renewal
Section III: Scope of Employment Service Enterprise Operation
Article. 20 The Scope of Rights for Employment Service Enterprises
Article 21. The Duties of Employment Service Enterprises.
Article 22. Obligation of employment service enterprise
Article 23. Allowing others to use the enterprise name or license
Article 24. Enterprise Branches
Article 26. Business Termination.
Article 27. Rights and Duties of Service Users
Section IV: The Employment Service Enterprise Supervision
Article 28. Supervision by the Government
Article 29. Rights and Duties of Employment Supervision Authority on Employment Service
Section V: Fees and Service Charges
Article 33. Service Charges of Employment Service Enterprises
Section VI: Awards for Good Performance and Violator Measure
Article 34. Awards for Good Performance
LAO PEOPLE’S DEMOCRATIC REPLUBIC
PEACE INDEPENDENCE DEMOCRACY UNITY PROSPERITY
Ministry of Labour and Social Welfare No: 043 /MLSW
Vientiane, Dated 12.01.2010
Decision on
Establishment and Supervision of Employment Service Enterprises
Minister of Labour and Social Welfare hereby issued a Decision:
General Provisions
This Decision defines principles, regulations, measures on the establishment, and operation and supervision related to employment service enterprises in order to ensure employment, income and reducing of the poverty of Lao labour.
Government encourages, promotes domestic individuals, legal entities or foreign joint venture with domestic investors in establishing employment service enterprises or joining employment service business operation in accordance with principles, regulations, measures, including providing information to facilitate employment service enterprises so that they can contribute to the national socio-economy development.
Article 4: Principles of Employment Service for Lao National
The principles of employment service for Lao national are as following:
Article 5. Employment Service Enterprise Standard
Employment service enterprises shall have following standard:
Article 6. Employment Service Information
Employment service information includes:
Article 7. Types of Employment Service
There are two types of employment service in Lao PDR as following:
Article 8. Options of Employment Service
There are 4 options of employment service as following:
Article 9. Forms of Employment Service
There are 5 forms of employment service:
Article 10. Balancing Employment Service
Balancing the employment service should be implemented as following:
The Employment Service Enterprise Establishment Approval
Article 11. The Establishment of Employment Service Enterprises
Individuals or legal entities with Lao nationality, including foreign investors that join venture with Lao investors are entitled to establish employment service enterprises in accordance with relevant laws of the Lao PDR and this Decision.
Article 12. Application for the Establishment
The establishment of employment service enterprises shall go through a single window, the Department of Skill Development and Employment, which approves the application under the agreement of the Minister of Labour and Social Welfare.
Individuals and legal entities wish to establish employment service enterprises shall submit an application to employment supervision authority via Division of Labour and Social Welfare of provinces or Vientiane Capital.
Article 13. Types of Employment Service Enterprises
The types of employment service enterprises are as following:
Article 14. Criteria for the Establishment
Individuals or legal entities wish to establish an employment service enterprise shall meet following criteria:
Article 15. Application Documents
Relevant documents for applying to establish employment service enterprises are as following:
Article 16. Registered Capital and Collateral
Employment service enterprises shall have registered capital and deposit as following:
Article. 17 Consideration and Approval Duration
Consideration and approval of the license for the establishment of employment service enterprises for domestic employment is no later than 30 working days, from the day of receiving application (exclude the time of application passing through Division of Labour and Social Welfare of provinces or Vientiane Capital);
Consideration and approval for the establishment of employment service enterprises for domestic employment and exporting labour overseas is no later than 60 working days, from the date of receiving application.
Article. 18 License Period for Employment Service Enterprises
License on the establishment of employment service enterprises has 2 years validity and the license can be extended, but the employment supervisory authority shall be informed 30 days in advanced, otherwise it will be terminated.
Article. 19 The Employment Service Enterprise License Renewal
Employment service enterprises that wish to renew their license need to meet following conditions:
Scope of Employment Service Enterprise Operation
Article. 20 The Scope of Rights for Employment Service Enterprises
Employment service enterprises have following rights:
Article 21. The Duties of Employment Service Enterprises.
Employment service enterprises have following duties:
Article 22. Obligation of employment service enterprise
Employment service enterprises are obligated to operate its business according to its objectives, implement their obligations to the government, protect rights and benefits of labour, protect environment and respect relevant laws and regulations of Lao PDR.
Article 23. Allowing others to use the enterprise name or license
Allowing others to use the enterprise name and license to operate business shall be done in writing and follow the Law on Contract of Lao PDR.
In case the owner does not transfer the rights to use enterprise name or license in written, but there is evidence that the owner knows and does not take any actions or disagree or support the transfer, it will be deemed that such transfer of rights is legitimate.
Article 24. Enterprise Branches
Article 25. Enterprise Group +
If it is necessary to strengthen employment services and enabling more employment opportunities for Lao people, employment service enterprises can be established as a group, but shall follow the Law on Enterprise of Lao PDR.
Article 26. Business Termination.
Employment service enterprises can be terminated as following cases:
Article 27. Rights and Duties of Service Users
Service users of employment service enterprises have following rights and duties:
The Employment Service Enterprise Supervision
Article 28. Supervision by the Government
Employment service enterprises including state and private enterprises located in central and provincial are under the direction and supervision of the employment supervision authority of the government, Ministry of Labour and Social Welfare.
Article 29. Rights and Duties of Employment Supervision Authority on Employment Service
Article 30. Rights and Duties of Division of Labour and Social Welfare of Provinces-Vientiane Capital on Employment Services
Division of Labour and Social Welfare of Provinces-Vientiane Capital has following rights and duties:
Article 31. Rights and Duties of Labour and Social Welfare Office in Districts and Municipalities on Employment Service
Fees and Service Charges
Fees and service charges for employment service are to be collected as followings:
For license extension fee is 50% of the approval for establishment fee.
Article 33. Service Charges of Employment Service Enterprises
Service charges of employment service enterprises are to be collected as followings:
Awards for Good Performance and Violator Measure
Article 34. Awards for Good Performance
Employment service enterprises with outstanding performance in implementing this Decision which certified by Board of Directors and Employment Supervision Authority will receive compliments, and policy according to regulations.
Individuals or legal entities that operate employment service business without an official approval in accordance with laws and regulations will be educated and fine 300 US Dollar per person per time and be ordered to terminate their activities, in case of damages, there will be legal actions according to laws and regulations.
1st time: will receive education, to pay compensation and fine at 10% of the compensation amount;
2nd time: to pay compensation and fine of 30% of the compensation amount;
3rd time: to pay compensation and fine of 60% of the compensation amount;
4th time: to temporary suspend of business;
5th time: to terminate employment service enterprise license.
In case of damages, there will be legal actions according to laws and regulations.
Service users of employment service enterprises who violate this Decision will receive measures of education, payment for damages or result in legal proceeding.
Any employment service enterprise partners that employ labour if do not follow the contracts will pay for compensation or result in law suit judged by the court.
Final Provision
The Department of Labour Skill Development and Employment, Division of Labour and Social Welfare in provinces, Vientiane Capital are assigned to elabourate and direct the strict implementation of this Decision.
This Decision is effective 30 days after the date of signature. All Decisions, regulations which are effective before if contradict with this Decision they are terminated.
Minister of Labour and Social Welfare
(Signature and Seal)
Onechanh THAMMAVONG
Name | Description | Status |
---|---|---|
Application documents for Employment Recruitment Enterprises | Applications for the establishment of an employment recruitment enterprise shall include the following documentation: • An application form to establish a domestic, or domestic and foreign employment recruitment enterprise; • An economic-technical feasibility study relating to the recruitment services; • Details of the background of the director; o The director shall have completed secondary school education or specific academic qualification; • Organizational structure or board of directors; • Location of the employment recruitment enterprise, telephone number, and facsimile number; • Articles of Association; • Enterprise regulations regarding the management and utilization of labour (employee management); • Certification of address; • Background Clearance Form 3; • Copy of ID Card and family registration book; • Four 4x6 photographs; and • Other relevant documentation as may be requested. | Active |
Applications for Extension of Employment Recruitment Enterprise Establishment License | An employment recruitment enterprise that wishes to extend its establishment license shall meet the following conditions: • Have properly implemented laws and regulations issued by the State; • Has provided employment recruitment services and managed workers in an efficient manner; • Has not caused socio-economic damage; • Has performed obligations to the State in a timely manner and in full; and • Has reported on employment recruitment activities to the State Employment Recruitment Management Organization on a regular basis. | Active |
Approved entity forms for Employment Recruitment Enterprises | The categories of employment recruitment enterprises are Private enterprises may select the form and type of enterprise to be established and business operations as provided in Articles 13, 14 of the Law on Enterprises of the Lao PDR. | Active |
Approved entity forms for Employment Recruitment Enterprises | The categories of employment recruitment enterprises are State Enterprises, mixed enterprises, and collective enterprises may be established and operate business only in the form of a “company”. State enterprises are called "companies" and mixed enterprises are called "mixed companies". | Active |
Branch office requirements for Employment Recruitment Enterprises importing personnel from other provinces | In the event that a recruitment enterprise imports from other provinces and locales to work domestically or abroad, a valid branch office shall be located in such provinces or locale in accordance with laws and regulations. | Active |
Collection of Service Charges by Employment Recruitment Enterprises | The collection of service charges by employment recruitment enterprises shall be performed as follows: • For sending a worker to work abroad, the employment recruitment enterprise shall charge an equivalent of 5% of the monthly salary of the worker each month, or the service charges may be collected in a single payment at the origin or destination as agreed between the supplier and the worker; • For domestic employment recruitment services, the employment recruitment enterprise shall collect a service charge of 50% of the initial salary of the worker and shall only be collected one time; and • A receipt shall be issued for each collection of employment recruitment service services charges and fees. | Active |
Duties of Employment Recruitment Enterprises | The Decision on the Establishment and Management on Employment Recruitment Enterprises (No. 043/LSS) sets out a lengthy list of substantial obligations of Employment Recruitment Enterprises, which should be reviewed prior to any investment in this sector. | Active |
Establishment of Branch Offices for Employment Recruitment Enterprises | Employment Recruitment Enterprises are permitted to establish domestic branch offices, upon approval of the Enterprise Registration Registrar. | Active |
Establishment requirements for Employment Recruitment Enterprises | Individuals or legal entities who wish to apply to establish an employment recruitment enterprise shall able to provide a cash security deposit when sending workers abroad and a registered capital for establishment. | Active |
Establishment requirements for Employment Recruitment Enterprises | Individuals or legal entities who wish to apply to establish an employment recruitment enterprise shall be a Lao national or foreigner in a joint venture with a Lao citizen. | Active |
Establishment requirements for Employment Recruitment Enterprises | Individuals or legal entities who wish to apply to establish an employment recruitment enterprise shall be aged 25 years or above. | Active |
Establishment requirements for Employment Recruitment Enterprises | Individuals or legal entities who wish to apply to establish an employment recruitment enterprise shall be of good and complete health. | Active |
Establishment requirements for Employment Recruitment Enterprises | Individuals or legal entities who wish to apply to establish an employment recruitment enterprise shall have a clean background. | Active |
Establishment requirements for Employment Recruitment Enterprises | Individuals or legal entities who wish to apply to establish an employment recruitment enterprise shall have completed at least secondary school level education. | Active |
Establishment requirements for Employment Recruitment Enterprises | Individuals or legal entities who wish to apply to establish an employment recruitment enterprise shall have prior business experience and have a labor related experience. | Active |
Establishment requirements for Employment Recruitment Enterprises | Individuals or legal entities who wish to apply to establish an employment recruitment enterprise shall not be bankrupt. | Active |
Establishment requirements for Employment Recruitment Enterprises | Individuals or legal entities who wish to apply to establish an employment recruitment enterprise shall submit an application to the State Employment Recruitment Management Organization through the Provincial-Capital Labor and Social Welfare Division. | Active |
Establishment requirements for Employment Recruitment Enterprises | Individuals or legal entities who wish to apply to establish an employment recruitment enterprise shall submit the application in person. | Active |
Fees for Employment Recruitment Enterprises | The collection of employment recruitment fees shall be performed as follows: • Fees for forms and worker application forms and signing off authorization at the local level shall be charged LAK 10,000 per set; • Fees for the issue of domestic employment recruitment enterprise establishment licenses shall be charged LAK 500,000 per license; and • Fees for the issue of domestic and foreign employment recruitment enterprise establishment licenses shall be charged LAK 100,000,000 per license. License extensions shall be changed 50% of the establishment license fees. | Active |
Foreign investment restrictions in the Employment Recruitment sector | Individuals or legal entities which are Lao citizens, including foreign individuals and legal entities investing in a joint venture with Lao citizens are entitled to establish employment recruitment enterprises in accordance with the laws and regulations of the Lao PDR and this Decision. | Active |